On April 1, 2015, Benton Corporation purchased 80% of the outstanding stock of Crandel Company for $425,000.

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On April 1, 2015, Benton Corporation purchased 80% of the outstanding stock of Crandel Company for $425,000. A condensed balance sheet of Crandel Company at the purchase date is shown below.

On April 1, 2015, Benton Corporation purchased 80% of the

All book values approximated fair values on the purchase date. Any excess cost was attributed to goodwill.
The following information was gathered pertaining to the first two years of operation since Benton's purchase of Crandel Company stock:
a. Intercompany merchandise sales were summarized as follows:

On April 1, 2015, Benton Corporation purchased 80% of the

b. On March 31, 2017, Benton owed Crandel $10,000, and Crandel owed Benton $5,000 as a result of the intercompany sales.
c. Benton paid $25,000 in cash dividends on March 20, 2016 and 2017. Crandel paid its first cash dividend on March 10, 2017, giving each share of outstanding common stock a $0.15 cash dividend.
d. The trial balances of the two companies as ofMarch 31, 2017, follow:

On April 1, 2015, Benton Corporation purchased 80% of the

1. Prepare the worksheet necessary to produce the consolidated financial statements of Benton Corporation and its subsidiary for the year ended March 31, 2017. Include the value analysis and a determination and distribution of excess schedule and the income distribution schedules.
2. Prepare the formal consolidated income statement for the fiscal year endingMarch 31, 2017.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Consolidated Income Statement
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Advanced Accounting

ISBN: 978-1305084858

12th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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